Midterm_2 - Chapter 7 Full Employment Unemployed: healthy,...

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Chapter 7 Full Employment Unemployed: healthy, willing to work, but no job Employed: Age 16 not in mental institution, prison, or in military services Full employment = 3.5-4.5% unemployment P160: Types of unemployment, labor force 4 Types: 1. Frictional unemployment occurs when you are between jobs looking for another—not a danger to the American Economy ** 2. Structural 3. Seasonal 4. Cyclical Page 163- Discouraged Workers Page 164 Page 165 Page 166:full employment and natural rate of unemployment GRAPH with peak, trough, recover, recessions - Why recession? Monetary system collapsed -Investment went down -How did bush recover the economy? He increased consumer spending by giving you a check for rebate and tax cuts for corporations, encourage them to employ the unemployed -Government Increased deficit -Investors lowered Interest rate Aggregate Demand: total spending by consumers, investors, and government What is the difference between structural and seasonal unemployment? What causes the four different types of unemployement?
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This note was uploaded on 12/01/2009 for the course ECON 20091_ECO at USC.

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Midterm_2 - Chapter 7 Full Employment Unemployed: healthy,...

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